Stock Markets July 31, 2026 03:48 AM

RHI Magnesita posts H1 results; reiterates full-year adjusted EBITA target

Sales steady on constant-currency basis, margins improve as company targets cost savings and working capital unwind

By Avery Klein
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RHI Magnesita reported H1 2026 sales of €1,595 million, flat on a constant currency basis but down 5% on a reported basis, with volumes sliding 2.7%. Adjusted EBITA rose to €165 million, driven by margin expansion and cost measures, while the company reconfirmed its full-year adjusted EBITA guidance of €400 million despite a noted €35 million foreign exchange headwind.

RHI Magnesita posts H1 results; reiterates full-year adjusted EBITA target
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Key Points

  • H1 sales of €1,595 million were flat on a constant currency basis but down 5% on a reported basis; volumes declined 2.7%. (Impacts materials and industrial sectors.)
  • Adjusted EBITA rose to €165 million and margins expanded to 10.3%, supported by cost reductions and price actions. (Impacts financial performance and valuation metrics.)
  • Company reaffirmed full-year adjusted EBITA guidance of €400 million, factoring in a €35 million FX headwind and €45 million of expected self-help benefits. (Impacts corporate planning and investor expectations.)

RHI Magnesita N.V. released first-half 2026 results showing mixed top-line trends alongside notable margin improvement.

Sales and volumes

The company recorded sales of €1,595 million for the first half. This represents a 5% decline on a reported basis versus the prior year but was unchanged on a constant currency basis. Volumes contracted by 2.7% over the period.

Profitability

Adjusted earnings before interest, tax and amortization (EBITA) reached €165 million, an increase of 17% compared with the same period a year earlier and a 42% rise on a constant currency basis. The adjusted EBITA margin expanded to 10.3%, up 190 basis points versus the prior-year half, a development management attributes to cost reduction measures and price adjustments.

Earnings per share totaled €1.81, up 32% year-over-year. The company reported a refractory margin contribution of 9.5%, an improvement of 220 basis points from the prior year. Raw materials made a 0.9% contribution to margins, down from 1.1% in the first half of 2025.

Balance sheet and leverage

Net debt at the half-year point was €1,528 million, translating into leverage of 2.9 times, unchanged from the level reported on December 31, 2025.

Guidance and outlook

The company reiterated its full-year adjusted EBITA target of €400 million. That outlook incorporates an expected foreign exchange headwind of €35 million and assumes that self-help measures will produce €45 million of benefits during the year.

In sector-specific commentary, management said the outlook for steel markets is improving, while conditions in industrial markets remain more challenging, particularly for industrial projects. By contrast, order books for the non-ferrous and glass segments are picking up.

Working capital and year-end targets

RHI Magnesita expects working capital intensity to be 22% by year-end, reflecting an unwind of a temporary inventory build recorded in the first half. Management projects net debt to fall to roughly €1,400 million by year-end, with the net debt to EBITDA ratio moving toward 2.6 times.


This report presents the company-provided results and management commentary for H1 2026, alongside reiterated full-year targets and balance-sheet expectations.

Risks

  • Foreign exchange headwind of €35 million is included in guidance - currency volatility could affect reported results. (Relevant to finance and multinational operations.)
  • Industrial markets are described as more challenging, particularly in industrial projects, which could pressure volumes and sales in that segment. (Relevant to industrial and project-driven sectors.)
  • Working capital dynamics require an unwind of temporary inventory build; failure to realize the expected reduction could keep working capital intensity elevated and delay debt reduction targets. (Relevant to balance-sheet and liquidity metrics.)

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